4-Star Stocks Poised to Pop: Suncor (CNQ, SU)

4-Star Stocks Poised to Pop: Suncor

Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian oil and gas giant Suncor Energy (NYSE: SU ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Suncor's business and see what CAPS investors are saying about the stock right now.

Suncor facts

Headquarters (founded)	Calgary, Canada (1953)
Market Cap	$49.9 billion
Industry	Integrated oil and gas
Trailing-12-Month Revenue	$31.05 billion
Management	President/CEO Richard George CFO Bart Demosky
Return on Equity (average, past 3 years)	12.9%
Compound Annual Revenue Growth (over past 3 years)	26.8%
Cash/Debt	$460 million / $13.4 billion
Dividend Yield	1.2%
Competitors	Canadian Natural Resources (NYSE: CNQ ) Imperial Oil (NYSE: IMO )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 1,611 members who have rated Suncor believe the stock will outperform the S&P 500 going forward. These bulls include Intrepid11 and speedylube1.

A few months ago, Intrepid11 tapped Suncor as a particularly potent oil sands play:

Following its acquisition [of] Petro-Canada last year, Suncor is the leading energy company in Canada and one of the largest in North America, based largely on its growing development of huge oil sands reserves. As world economic growth resumes, petroleum demand will continue to grow world-wide and the earnings of this friendly and reliable neighbor to the north will similarly resume.

While Petro Canada's upstream assets helped Suncor become a more conventional, fully integrated oil and gas giant such as ExxonMobil or Chevron, our community remains drawn to the stock primarily for its Alberta oil sands exposure. In the most recent quarter, Suncor said it expects oil sands volume to average about 280,000 barrels per day for 2010, so it's easy to see where Fools are coming from. And with the shares lagging Canadian rivals like Canadian Natural and Imperial Oil by a healthy margin over the past two years, Suncor also seems like a relatively inexpensive way to play in the sands.

CAPS member speedylube1 helps explain the potential:

The Alberta's tar sands region is the second biggest crude-oil deposit in the world. Even before the spill, a report concluded that Canadian tar sands would be the single biggest source of US crude imports in 2010. I also believe crude futures are heading back to the $85-$90 mark by the end of the year. Our oil has to come from somewhere and I'm betting on oil sands of Canada.

What do you think about Suncor, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

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